Bond refinancing could save city of Kewanee $80,000

Monday

Jan 14, 2013 at 7:15 AMJan 14, 2013 at 9:04 PM

Bonds have lower interest rates

Mike Berry

The city of Kewanee stands to save $80,000 or more in interest on three loans from the Illinois Environmental Protection Agency, under a bond refinancing plan that’s in the works.The City Council plans to issue $6.8 million in bonds to refinance the loans, which were for water and sewer projects. The interest rate on the loans was 2.7 percent; on the bonds, the rate should be around 2.3 percent.The refinancing could save the city $80,000 to $90,000, depending on market interest rates at the time the bonds are issued.The council Monday passed an ordinance authorizing issuance of the bonds.When the ordinance is published in the Star Courier, a 30-day “backdoor referendum” period will begin.If no petitions opposing the bonds are presented within the 30 days, the issue will be finalized, probably sometime next month.Also Monday:- The council hired the Moline engineering firm of Shive-Hattery to do design work and seek Illinois Environmental Protection Agency permits for replacement of an aerator at the wastewater treatment plant.City Manager Kip Spear said Shive-Hattery has worked for the city on several projects in the past. The firm’s proposal was the most cost-effective of the seven proposals the city received from engineering firms for the job.- Two Plan Commission recommendations were approved — a special use permit to Eric Ellenberger for a used-vehicle sales business at 505 Tenney St., and transfer of the special use permit allowing operation of Trading Post Liquors, 431 N. East St., to Abdelfattah Asad.Ellenberger told the council he had spoken with neighboring property owners, and none of them opposed his plans for the Tenney Street location. He said he would have 20 to 25 cars on the lot.The council expressed concern — as had two objectors at the Plan Commission meeting earlier this month — about prior operation of the liquor store. Specifically, they were concerned about the sale of items that could be used as drug paraphernalia.Spear said Asad had testified at the commission meeting that he wouldn’t be selling such items.- Denise Bulat, executive director of the Bi-State Regional Commission, explained the commission’s services to its member communities.Bulat said the commission staff assists local governments in the five counties it serves — Henry, Rock Island and Mercer in Illinois and Scott and Muscatine in Iowa. Services include helping with applications for state and federal grants, and planning assistance.